Car Loan Comparison Australia

If you don't have the money to purchase a car outright, you'll need a car loan. A car loan breaks the overall payment into smaller repayments made over time. Start comparing below and you could soon be in your new set of wheels.

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Car loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 89 car loans.
Last updated 15 July 2024 Important disclosures and comparison rate warning*
  • Used Car Loan

    Fixed, Secured, No vehicle age limit

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured used car loan of up to $75,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • Better Car Loan Special Offer

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    6.65% p.a.based on $30,000
    over 5 years

    Get a fixed rate car loan for amounts over $20,000 with Police Credit Union. Make additional repayments at any time without penalty. Free online redraw. Available for new and used cars. Can also be used for motorcycles, boats, caravans, trailers or any registrable vehicle.

    Repayment terms from 1 year to 5 years. Representative example: a 5 year $30,000 loan at 6.24% would cost $35,295.27 including fees.

    Compare
    Details
  • New Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured new car loan of up to $75,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • Any Age Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    10.69% p.a.
    10.97% p.a.based on $30,000
    over 5 years

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 10.69% would cost $39,053.66 including fees.

    Compare
    Details
  • Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    8.99% p.a.
    9.13% p.a.based on $30,000
    over 5 years

    Repayment terms from 1 year to 6 years. Representative example: a 5 year $30,000 loan at 8.99% would cost $37,456.30 including fees.

    Compare
    Details
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Personal loan options

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 247 personal loans.
Last updated 15 July 2024 Important disclosures and comparison rate warning*
  • Mozo Expert Choice Badge
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

    Compare
    Details
  • Mozo Expert Choice Badge
    Low Rate Personal Loan

    Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 8.48% p.a.
    7.19% p.a.to 8.84% p.a.based on $30,000
    over 5 years

    Competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.55% p.a.to 24.98% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.

    Compare
    Details
  • Holiday Loan

    Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 8.48% p.a.
    7.19% p.a.to 8.84% p.a.based on $30,000
    over 5 years

    Travel the globe with competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice award for 2024 ^. Min. income of 25k after tax, to apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • Express Personal Loan

    Secured

    interest rate
    comparison rate
    Monthly repayment
    14.95% p.a.to 27.95% p.a.
    29.30% p.a.to 42.8% p.a.based on $10,000
    over 3 years

    Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-48 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

    Repayment terms from 2 years to 4 years. Representative example: a 3 year $10,000 loan at 14.95% would cost $14,324.71 including fees.

    Compare
    Details

Personal loan lenders we compare at Mozo

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Car loan resources

Reviews, news, tips and guides to help find the best car loan for you.

Car loans monthly snapshot: July 2024

Car loan offers are quite good in the middle of 2024, which coincides well with a return to more normalised car production and sales. According to car selling websites such as Carsales, consumers are back in the box seat and in a better position to negotiate with increased vehicle options.

However, if you missed the end of financial year sales, most experts suggest shopping at the end of month to secure a more favourable deal. That means the first part of the month might be the best time to get your finances in order.

To this end, the Mozo database currently shows some sound car loan options. The current average interest rate for a new car loan is 7.36% p.a. and an 8.04% p.a. average for used car loans. These are by no means the best rates available, though.

Currently, the Mozo database offers rates as low as 5.66% p.a. for both second-hand and new vehicles—a testament to the fact that shopping around and comparing car loans usually pays off.

New car loan (excluding green car loans):

Used car loan (excluding green car loans):

Green car loan:

*Data as of July 1, 2024.

Find and compare top car loan deals

Show transcript

What is a car loan?

A car loan is a type of personal loan that you use to purchase a vehicle. It's a secured loan, which means the vehicle you are purchasing is used as security against the loan you are taking out. 

These types of loans aren’t exclusive to new cars either: there are a range of providers that offer car loans for used vehicles too.

The right car loan for your needs will depend on a range of factors, such as the age of your car, what sort of flexible loan features you're after and the amount you want to borrow.

Just like personal loans, there's a huge range of car loans out there vying for your attention from both bank and non bank lenders. So how do you decide? Read on!

Choosing between a fixed or variable rate

Like other loan products, car loans come with either a fixed or variable interest rate. Ultimately, the type of interest rate you choose can impact what you pay each repayment period. 

Fixed rates

A fixed rate car loan is where you receive the same interest rate over the entire life of the loan term. If you stick to your regular repayments, you will pay exactly the same amount to your lender each payment cycle. Plus, if interest rates spike during your loan period and car loan rates change, your loan won't be affected because you've locked it in.

The downside of fixed interest rates is that you won't benefit from any market changes if rates are reduced. Some lenders also charge early repayment penalties on fixed rate car loans - meaning if you pay off your entire loan in full before your loan term is up, you could face a hefty fee.

Variable rates

The other option is a variable rate car loan. Unlike a fixed car loan, a variable interest rate can go up or down during your loan term, typically in line with benchmark interest rates set by the Reserve Bank Of Australia. On the one hand this could work in your favour, but it could also end up costing you more if the rate goes up.

There is one solid benefit of a variable rate car loan though: you rarely will pay an early repayment penalty if you square things away ahead of time. So if you plan to throw a little extra cash towards your car loan, and don't mind the risk of a potential rate rise, a variable loan may be the option for you.

Comparison rate

The truth is the interest rate on your car loan is unlikely to be the only cost you face. There may be a range of other additional fees and charges that you need to factor in. This is where the comparison rate comes in.

The comparison rate incorporates things like the interest rate, fees and charges, so that you, the customer, has a more rounded view of what the loan is going to cost. Make sure you check the comparison rate on a car loan before applying, it may be a lot higher than the headline rate. (Quick note: Australian lenders must display comparison rates when advertising loan products). 

If you'd like to compare the difference between a fixed or variable interest rate car loan, check out our car loan comparison calculator.

Features of a top car loan

Many car loans come with features designed to make your life easier as you pay them off, such as optional additional loan repayments and redraw facilities. 

Below is a run through of these and other features you'll find in a top car loan.


featured of a good car loan
  • Low interest rate

Ideally you want a competitive interest rate on your car loan, one that’s lower than most. For example, you’ll see a wide range of available interest rates on Mozo's car loan comparison table, so let’s do a quick calculation to see the difference

With an interest rate of 12.74%, for instance, you’ll hand over $15,488 in interest for a $30,000 car loan over a 7 year loan term (on a monthly loan repayment plan). On the other hand, a much lower rate of 5.14%, will save you $9,705 (which equates to $5,783). It just goes to show you how much that one number can affect your hip pocket!

  • Little or no fees

Individually, monthly fees and signup costs may appear small, but they really do add up. One easy way to factor in all the costs involved with a potential car loan is to look at the comparison rate. This rate type is made up of overheads like the headline rate, application and ongoing fees.

Just remember, that even if you settle on a car loan with low fees, most providers will bill you more for making a late repayment.

  • Minimal early loan repayment penalty

Whether or not a car loan should have an early loan repayment penalty will depend on who you ask and the interest rate you choose. Some people like sticking to the original loan repayment schedule as it suits their financial situation best, while others prefer keeping their early loan repayment options open.

  • Convenient extra repayments and redraw facility

If making extra repayments suits your style and you use the feature efficiently, you'll end up paying less in interest. Remember, the rate is only applied to how much you owe.

Another top car loan feature is a redraw facility. You can use this to access any additional funds paid into your car loan outside of regular ongoing repayments.  Keep in mind that some providers set redraw minimums and have redraw fees, which may cost more than what the flexibility is worth to you. Also, redraw facilities only come with variable rate loans.

What types of car loans are available?

From online car loans to those for people with a history of bad credit, there’s a car loan to suit every budget and lifestyle. You can choose from an unsecured or secured loan, fixed or variable interest rate and from a range of different lender types, too.

Typical car loans include: 

Where can I compare cheap car loans?

Finding a low interest car loan can mean saving hundreds of dollars over the life of your loan. And the good news is, it’s easy to compare car loans right here on Mozo!

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JP Pelosi
RG146
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

More FAQs about Car loans

 How to spot a car loan trap

To help you dodge a car loan trap, look out for the following tell-tale signs...

  • Interest rate is too high

Treat high car loan interest rates like bad omens and steer clear of them! When you secure your car to a loan, the rate should be reasonable rather than high. For a clear picture on the kind of rate you can expect, compare car loans at the top of the page.

  • Too many fees

Car loans with competitive interest rates can still sting you with monthly and sign up fees. It's a trap that can come back to haunt you over time. For instance, say you take out a $15k car loan and pay it off over a 5 year contract. Even if you have a low $7 monthly fee, over the course of the loan it will amount to a tidy sum of $420. Wouldn't you rather have that money in your bank account?

  • Not enough flexibility

There's nothing worse than choosing a car loan without enough flexibility when you need it. For instance, one car loan we compare allows you to make extra loan repayments, though there is no redraw facility available. For some this may be too constraining. It's important to weigh up flexibility with interest rates and fees, as you may be happy to compromise on the interest rate for the features you want.

Why are secured car loans are cheaper?

Car loans are typically cheaper than regular personal loans because they are often secured against the car purchase. As you know, shiny new vehicles are valuable assets, so when you tie one to a loan as collateral, you sign a contract stating that your provider can claim your car if you default on the loan. In return for this security, providers offer more competitive rates, meaning you end up paying much less in interest! 

When it comes to buying a used vehicle with a secured car loan, your options are generally limited. This makes sense, given second-hand cars can be risky purchases. New cars on the other hand have warranties and can be resold more easily. If you want to buy a used car, shop around here at Mozo, as some lenders can secure cars that have been on the road for a few years. 

Can I get a guarantor on a car loan?

Yes, you can get a guarantor on a car loan. These types of car loans can be handy for customers struggling to get lending approval on their own, such as people with bad credit, minimal or no credit history or young people.

How does a guarantor car loan work? Well, it’s when a family member or friend guarantees your loan, meaning they put up their assets as collateral or agree to make the remaining repayments should you default on the loan. 

So if you opt for this type of car loan, ensure you make all your regular repayments in full and on time.

Can I get a car loan as a student?

It is possible to get a car loan as a student, but you’ll need to do some shopping around to find a good deal. Whether you opt to take out a loan with a bank, credit union, online or peer-to-peer lender, you’ll likely find an option to suit you. 

Before you start your search for the right car loan, it’s crucial that you figure out exactly how much you can afford to borrow and pay back. Remember to budget for things like the interest rate, application fee, any ongoing fees and potential costs you may face (such as a late fee). Also keep an eye out for free extra repayments, it’ll give you the flexibility to put extra towards your loan if you want to.

What is the difference between a personal loan and a car loan?

The main difference between a personal loan and a car loan is that a car loan is secured against a vehicle you intend to buy, whereas a personal loan isn’t. Instead, a personal loan can be used to purchase a range of different things, and can be either secured (to say a vehicle or your home) or unsecured (meaning you don’t put up any assets as collateral).  

It’s important to keep in mind that opting to secure your vehicle against the loan often means you’ll receive a lower interest rate. This will save you money over the life of the loan.

How do I compare car loans? 

Whether you're looking for a$50,000 car loan for a luxury buy or a $5,000 loan for a second-hand set of wheels, it's super easy to compare car loans here at Mozo. Once you begin studying the tables at the top of this page, you'll begin to notice the key benefits of each loan. When you're ready, choose your car loan by clicking on a blue "go to site" icon beside the product of your choice. You'll have the opportunity to apply via the provider's site.

What calculators will help me compare loans and repayments? 

Finance isn't so hard when you have calculators to do the sums for you! Here are three seriously useful ones we've developed for an even more thorough car loan comparison...

  • Switch and save calculator. As the name suggests, this tool is designed to calculate whether you'd be better off financially on another car loan than the one you have currently. Type in some key loan details and Mozo will give you the results!
  • Car loan comparison calculator. Compare the cost of two loans by typing in key details like your interest rate, loan term, loan amount, and fees compared to another car loan product listed on our site.
  • Car loan repayment calculator. Want to know what your loan repayments would look like? Just type in the loan amount, loan term, interest rate and repayment frequency. This calculator will also tell you how much you'll pay in interest over the loan term.

What is a novated lease? 

A novated lease is another way to finance a new or used car. It is an arrangement where you make repayments on the vehicle with your pre-tax salary. You must make the arrangement with your employer under ‘salary sacrifice’. 

Ultimately, a novated lease can actually reduce your taxable income. Before tax, your employer makes the repayments on your behalf to your chosen financial institution. These repayments can cover the price of the car as well as ongoing running costs as well (which could include fuel, maintenance and insurance). 

What is a chattel mortgage? 

A chattel mortgage is a formal financial term that essentially describes a car or equipment loan for a business. The “chattel” refers to the car or equipment, while the “mortgage” is another term for loan. 

The way that it works is the chattel mortgage allows a business to buy a car or equipment straight away. Then, from the income the particular asset generates, the loan is paid down incrementally (usually over 2 to 5 years). 

Like a regular car loan, if a business is unable to make their regular repayments, they may face repossession of the vehicle by their loan provider.

Should I consider leasing instead of buying a car?

Depending on your financial situation, leasing a car may be a better option. However there are some pros and cons to doing this. These include: 

Pros

  • Monthly lease payments tend to be cheaper than car loan repayments 

  • Some car leases come with a maintenance package whether the upkeep costs are included in your lease payments 

  • Easier to switch to newer models when you want to

  • If you take out a novated lease, it reduces your taxable income 

Cons 

  • You don’t own the vehicle (and you cannot claim it as an asset) 

  • You can’t modify the car 

  • You may face driving restrictions, such as a limited amount of kilometres over a certain period of time

  • More costly over time 

  • You cannot sell the car 

Can I get a car loan without a licence?

Yes, you can get a car loan without holding a licence. Depending on which state you are buying the car in, you may be able to buy and register the car as well without a licence. 

Remember, when applying for a car loan you will need identification documents to prove that you are you. So instead of a driver's licence you can use a combination of your passport, identification/photo card, Medicare card, as well as your utility bill. 

Does the type of car I want to buy affect my car loan options? 

Yes, the type of car can affect your car loan options, mainly the price of the car and whether your is new or used. 

Some lenders have borrowing limits that may not go as high as you like if you are buying a brand new sports car. For example, one loan may only let you borrow up to $50,000 while another $100,000. 

Similarly, whether your car is brand new or used will determine your eligibility for certain loans. Some loans only allow you to buy new or demo cars, while others may allow you to buy vehicles up to 7 years.

How do apply for a car loan?

Get all your documents ready like 100 points of ID, proof of income and details of your assets and liabilities. You'll need to have a clean credit record, although this doesn't necessary rule you out. Want to know what car loan amount you can afford? Check out our what car can you afford guide.

Most car loan applications can be done online, and approval can take as little as a few hours or even minutes. If you prefer to apply in person, visit a local branch of your chosen provider (if there is one), or call its customer service hotline.

Want to apply right now? Scroll up to the top of this page and click on a "go to site" button beside the car loan you want. Best of luck, and enjoy your new set of wheels!

Car Loan Reviews

RACQ Bank Fixed Car Loan
Overall 10/10
5 star service

The staff at RACQ bank are extremely accommodating. Products and Services are hassle free and communication is prompt and helpful. I am coming to the end of my 5 year loan term and would definitely use their services in future.

Read full review

The staff at RACQ bank are extremely accommodating. Products and Services are hassle free and communication is prompt and helpful. I am coming to the end of my 5 year loan term and would definitely use their services in future.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Tracey, Queensland, reviewed 6 days ago
Latitude Car Loan
Overall 1/10
Worst finance provider

One of the worst finance provider. They offered me 24% interest rate for a car loan, while RACV offered 10%. Clearly they are just here to rob people

Read full review

One of the worst finance provider. They offered me 24% interest rate for a car loan, while RACV offered 10%. Clearly they are just here to rob people

Price
1/10
Features
1/10
Customer service
6/10
Convenience
1/10
Trust
1/10
Less
Jaz, Victoria, reviewed 3 months ago
Toyota Insurance Car Loan
Overall 10/10
Easy and quick!!!

We recently took our a car loan with our local toyota dealer. The turnaround was insanely quick. Our car arrived much quicker than anticipated and we approached a broker regarding a loan. The amount of documentation they required seemed excessive however we trusted our broker. I started to compile all of the required documents when the dealer reached out again. They matched the rate offered by the broker and had us approved same day. We decided to proceed with the dealer as they made the process incredibly smooth. The monthly fees seemed reasonable compared to other loans offered. This loan had $8 p/month fee whereas Macquarie was $15 per month. Ideally I would've liked a more flexible car loan however, we agreed to lock in a fixed price and put any additional money we had into our home loan instead.

Read full review

We recently took our a car loan with our local toyota dealer. The turnaround was insanely quick. Our car arrived much quicker than anticipated and we approached a broker regarding a loan. The amount of documentation they required seemed excessive however we trusted our broker. I started to compile all of the required documents when the dealer reached out again. They matched the rate offered by the broker and had us approved same day. We decided to proceed with the dealer as they made the process incredibly smooth. The monthly fees seemed reasonable compared to other loans offered. This loan had $8 p/month fee whereas Macquarie was $15 per month. Ideally I would've liked a more flexible car loan however, we agreed to lock in a fixed price and put any additional money we had into our home loan instead.

Price
10/10
Features
7/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Billie, Victoria, reviewed 4 months ago

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